I’ve pointed out a few times here in afbitcoins and over in tfmetalsreport some of the recent landmarks bitcoins have made as measured against silver. As recently as February this year 1 bitcoin became more expensive than 1 ounce of silver for the first time ever. Just the other day bitcoins took out the all time high price for silver which has stood for more than 2 decades. (Of course I’m only talking nominally because it sounds dramatic, in 1980 $1 US was a much different value than $1 today)
Anyway for fun, and to annoy those silver bugs over in Turdville I’ve spent some of my hard earned time scaling up a graph of bitcoins to match as closely as I can on both time and price axis with a similar graph for silver. Heres the result.
Back in April 2011 when silver nearly topped its highest ever nominal price and reached $47, 1 bitcoin would have cost you less than $1 !!!! Hard to imagine that now, shortly after that though bitcoins hit the mainstream and a mania ensued, bitcoins stormed up to around $30 in a matter of only a couple of months. Silver meanwhile was slammed hard with large bullion banks blatently naked shorting massive amounts of paper silver, whilst at the same time margin rules were changed to hurt the longs.
The 2011 bitcoin bubble burst admist problems with the largest exchange, Mt Gox, being hacked, a series of other hacks to other exchanges also harmed bitcoins reputation and its price plummeted, some calling it the death of bitcoins.
In the meantime silver has been brutely slammed back down every time a technical area of its chart was reached and on every precious metal positive headline. In the world of finance and especially precious metals, up is down and right is wrong. Or as Orwell would say, freedom is slavery, ignorance is strength, war is peace.
Ever so slowly though bitcoins have been gathering steam, despite problems with 3rd parties being hacked and stolen from, the bitcoin protocols have proven their value. Bitcoins offer the promise of electronic money free from government and bank control. Much like gold and silver they promise not to be devalued through inflation. Bitcoins now look like a locomotive gathering more and more momentum. Is it possible that the bankers haven’t figured out how to manipulate bitcoins down yet?
So which will reach $100 US first? Bitcoins is on an exponential soon to be hockey stick shaped graph, silver is being held down by the forces of darkness but more than ever has overwhelming potential to the upside. If bitcoins hockey stick doesn’t get as high as $100 before its bubble bursts, silver might still win the race. If the shit really hits the fan then all bets are off.
As I’v said before, I am a big believer in bitcoins, gold and silver, all of these monetary assets will protect you from banker corruption and wealth theft. I have a feeling bitcoins will get to $100 first though.
[ Edit – I’ve added a poll in the forums so we can settle this fight by the vote. https://bitcointalk.org/index.php?topic=155095.0 ]